Quote from einstein:
Posting this for Nodoji upon request but any of more experienced traders should feel free to comment. I have been having difficulty entering on complex pullbacks, Keep getting faked out and then the trend usually goes the way I thought it would after I am stopped out.
Attaching a 1 min CL chart. There was a big uptrend in place and I was waiting to enter on a PB. I was thinking of entering on a break of the 6th candle in following the start of the PB but hesitated. That prob would have been a scratch trade. Instead I waited and put in a buy limit order at the Keltner 20 ema (first arrow) and was stopped out.
I am looking at some guidance on PB entries in a trend especially the more complex PBs . Thanks in advance.
E, you got some great feedback on this already! Here's my take:
1. Ditch the Keltners. During wide ranges, Keltners can be useful on a 5-min chart, but as Xpurt said, don't use them to anticipate anything, neither entries nor profit-taking exits. I cut so many profits short using Keltners (on a 5-min chart only) that I removed them from my chart quite a long time ago.
2. Anything you do on the 1-min chart should be in confluence with the 5-min price action (unless you're strictly a 1-min chart scalper, which from our conversations, you don't seem to be).
Look at the 5-min PA where you were looking for a continuation long. Price made a strong run up following the 11:40 ET bar bear trap setup. Price broke the previous high 108.99 by just a few ticks and pulled back cleanly to the 1-min 20 EMA. When price gets near the 1-min 20 MA start trailing a buy stop as long as a previous 5-min bar low doesn't get taken out. This is the scalper's method of re-entering the trend using 1-min pullback with-trend continuation (non-scalpers would be holding their initial long and looking add to the position on the pullback to the 1-min 20 EMA).
So using this buy stop trail, you end up long again @ 108.83, with a .10 or so stop loss. Price stays above the 1-min 20 EMA, pulls back toward it at 108.80, tries to move up again and there's no follow through. Here's where I'd scratch the 108.83 long or stop out on a break of a previous 5-min bar low (108.80 breaks) for a very small loss. If a 5-min bar low breaks after such a strong move up and a failed breakout of the previous 108.99 high, price will most likely pull back to the 5-min 20 EMA. If you like to scalp for 10-20 ticks a short @ 108.79 5-min bar break will give it to you far more often than not.
E, your mistake was going long after the
initial 1-min continuation setup fizzled out, telling you a deeper pullback is now in order, most likely to the 5-min 20 EMA.
CF, I think this answers a question you asked me as well. Also, if price doesn't pullback much at all on the 1-min, I sometimes just buy a break of the previous 1-min high if there's good airspace to the next likely R level. I also miss a few 1-min cont entries because price doesn't pull back as much as I expected and I'm not prepared in advance with my buy stop above the previous high :eek:
(All this is simply reversed for downtrends.)
Chart attached, notice how the 5-min previous bar break (scalper's short entry for a pullback to the 5-min 20 EMA) coincides with the 1-min trend line breaking and then becoming resistance, setting up the deeper pullback.
This is the beauty of using the two time frames together. The less experienced traders reading this should scroll their charts back to the hard right edge to see how these setups look there. Everything looks just beautiful after-the-fact, but not always so easy to take the trades at the sloppy right edge until you learn to recognize the setups and react immediately. I'm still working on that one!
, there is no ambiguity on the 5m chart. It is a simple 2 legged pullback to the ema and a simple H1 entry (ala AlBrooks) would give you a nice entry without much heat. And it is almost the same place where you have the 1m trendline breakout pullback entry. The drawn channel is the same as on the previous 1m chart.
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